Platts proposes to launch Mediterranean CIF Large Cargo LPG assessments from Nov. 1

Platts, part of S&P Global Commodity Insights, proposes to launch CIF Large Cargo LPG assessments in the Mediterranean, effective Nov. 1, amid market feedback seeking greater transparency for the value of LPG cargoes delivered on medium gas carriers and Very Large Gas Carriers in the Mediterranean following increased arbitrage inflows in recent years.

The proposed Platts Propane CIF Med Large Cargo assessment would reflect the value of refrigerated cargoes for delivery 3-15 days from the date of publication, with values normalized to reflect the mean of the delivery period.

The assessment would reflect full or part-cargoes of 8,500-23,100 mt, meeting field-grade (95%) propane specifications.

The assessment would be CIF basis Lavera, but deliveries into other ports in the Mediterranean may be reflected.

Trades basis other locations would be normalized to a Lavera basis by analyzing freight costs.

In addition, Platts Butane CIF Med Large Cargo assessment would reflect the value of refrigerated cargoes for delivery 3-15 days from the date of publication, with values normalized to reflect the mean of the delivery period.

The assessment would reflect full or part-cargoes of 8,500-23,100 mt, meeting field-grade mixed butane specifications, with a minimum 20% isobutane content.

The assessment would be CIF basis Lavera, but deliveries into other ports in the Mediterranean may be reflected.

Trades basis other locations would be normalized to a Lavera basis by analyzing freight costs.

Platts proposes to publish the new LPG assessments on an outright basis in $/mt, time-stamped at 4:30 pm London time.

In the absence of any bids, offers or trades in the Platts Market on Close assessment process, information heard in over-the-counter markets may be taken into consideration.

More details of the Platts European LPG methodology can be found here: /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/Europe-africa-refined-products-methodology.pdf.

Platts has established clearly defined timing guidelines and standards of incrementability that apply when publishing bids and offers during the MOC process in order to ensure an orderly and transparent price assessment process.

Details can be found in this guide: /content/dam/spglobal/ci/en/documents/platts/en/our-methodology/methodology-specifications/oil-timing-increment-guidelines.pdf.

Please send any comments or feedback by Oct. 1 to europe_products@spglobal.com and pricegroup@spglobal.com.

For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing.

Platts will consider all comments received and will make comments not marked as confidential available upon request.